Proposed Budget Fully Funds DCS

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Indiana Governor Eric Holcomb announced his proposed state budget, today.

The embattled Department of Child Services would get, in the Governor’s proposed budget, $286 million each year. This is the full amount DCS had requested. DCS has been struggling with increasing case loads and limited resources for some time. The agency’s problems came into public view last year when its former director resigned in retaliation to the cutting of funding and services by Governor Holcomb’s administration. Indiana has more youths in the child welfare system than any of the surrounding states, according to a report released in June by the Child Welfare Policy and Practice Group.

The two-year budget allocates about the same amount, or a little more, as the last state budget. Holcomb’s proposal includes 2% increase in state expenditure in 2020, and a 2.5% increase for 2021. The increases are fueled by new tax revenues.

Under the proposed $33-billion state budget, schools will not get a big boost. The recommended 2% increase for public education each year will keep education spending on track with inflation. A top Democrat from the Senate Appropriations Committee, Senator Karen Tallian of Portage, faulted the school funding proposal for falling below the national inflation rate of 2.2% over the past year.

State funding is the main source of funding for school districts.

Indiana ranks 31st among the 50 states in teacher pay in 2016. The average annual teacher salary in Indiana is $51,700 according to the National Education Association. That is lower than Illinois, Kentucky, Michigan, Ohio and Wisconsin. The proposed 2% increase will not be required to go towards teacher pay. This will be a decision for local school boards , according to the director of the state Office of Management and Budget.

There are cuts in the proposed budget. The Indianapolis Star reports one of the proposed budget cuts include the $3 million annual subsidy for the Hoosier State Train. If the cut is approved Amtrak’s route from Indianapolis to Chicago would end its service.

According to The Star Holcomb proposes to keep more than $1.8 billion in reserves, that is about 11% of the budget.

The Republican-dominated legislature has until late April to approve a budget. The approved budget will take effect in July.